Westboro in unique deal for state hospital

By Donna Boynton TELEGRAM & GAZETTE STAFF

Wednesday

Aug 21, 2013 at 5:00 AMAug 21, 2013 at 5:45 PM

Since its doors opened in 1884, the sprawling property and brick buildings on the shores of Lake Chauncy served thousands of adults and adolescents struggling with mental illness. The doors closed 126 years later. In what has been called a first-of-its-kind deal, the town has reached an agreement with the state to acquire 95 acres of the hospital property without restrictions.

WESTBORO — Since its doors opened in 1884, the sprawling property and brick buildings on the shores of Lake Chauncy served thousands of adults and adolescents struggling with mental illness. The doors closed 126 years later.

Since 2010, the nearly 300-acre state hospital property on Lyman Street, straddling the Westboro-Northboro town line, has been empty. The buildings have been boarded up, the patients moved. Visions of what could be prompted town officials to take action to avoid what could have been a nightmare scenario — a consultant hired by the state said the "highest and best use" of the property was hundreds of single-family homes that would swell the school population and squeeze town services.

In what has been called a first-of-its-kind deal, the town has reached an agreement with the Division of Capital Asset Management and Maintenance to acquire 95 acres of the hospital property without restrictions, a $2.2 million purchase that will be financed by the state over 10 years with zero percent interest loan.

Town meeting needs to authorize the land acquisition; a Proposition 2½ override will not be required to purchase the land. Legislation also needs to be approved to allow the state to sell the land.

The town will pay back the state as it sells parcels of the land, with 50 percent of the net proceeds going back to the state, and that percentage can be reduced to 30 percent through various incentive programs. Developers and businesses have already expressed in owning some of the property, including a film studio and a medical device company.

What makes this deal so unique, explained Town Manager James Malloy, is the low upfront cost with state financing, combined with the "profit sharing" model.

"This provides an opportunity for communities to get involved with a purchase like this without putting undue strain on the budget," Mr. Malloy said in an email.

"This is one of the most important things we have done as a community in many, many years," Selectman George Barrette said. "It is one of the last enormous pieces of land in town, but to have the control over how it is developed is really the most important part."

Scott Jordan, state undersecretary of Administration and Finance, said the agreement allows the state to work with the town as a silent partner.

Mr. Jordan said that residents often have the impression that when the state tries to redevelop its former hospital and other campuses for their "highest and best uses, that the town's needs are not taken into account."

While the state has been successful — albeit slow — in redeveloping some of its larger properties, "We think that we can return property to the tax rolls and to productive use much more quickly when we reverse roles with the town, when we have the town be the developer and owner, and work to the town's benefit, and the commonwealth, instead, becomes a silent partner."

The key, said town officials, is that the property can be acquired without restrictions. Generally, when the state transfers land it is to be used for a municipal purpose, Mr. Malloy said. Under this agreement, the town will be in the role of landowner in the redevelopment process.

"The town really has a first-in-the-state opportunity," said Ian Johnson, chairman of the Board of Selectmen. "This is really a novel approach and a unique way to offer us the ability to take over this land in an unrestricted fashion to control our own destiny as to how that property is developed."

When the hospital closed, the state formed the Westboro State Hospital Re-Use Commission, and its consultant issued a report a year later that said the "highest and best use" of the property was 500 housing units. Residents balked at that report, and asked town officials to pursue acquiring the property to control the redevelopment.

Had the housing project come to fruition, the town would be faced with building a new school. In addition, if the property was sold to a developer, the town would have to replace 15 acres the state has leased the town for soccer fields, all at an estimated cost of $4.4 million — twice the cost of the purchase price for the property.

The property has more than 1 million square feet of commercial development space, and the potential of an additional $1.3 million tax revenue, according to presentation given by Mr. Malloy earlier this summer. There are 20 buildings of various sizes on the property. The Main Administration Building and the Talbot Building do have some historic value, though the Talbot Building is in poor condition.

Mr. Malloy said the buildings will remain, and as they sell off the property, the developer can then determine what to do with structures.

Allen Hall, a boy's detention facility, is currently used on the property. Mr. Malloy said the town has asked the state to move Allen Hall to a new location, and while the state understands the town's request, it has only been able to commit adding the request to its capital plan.

Since the selectmen gave preliminary approval to the deal, Mr. Barrette said the town has received a "flurry of phone calls" from business and organizations interested in the hospital property. There has been talk of a fine arts center, a potential movie studio proposed by Anton Nel, who attended the June public meeting about the property, and a medical device company.

Mr. Malloy said the companies that have been in contact with him would be willing to discuss partial or complete property purchases. Mr. Malloy added that a the town may have to go through a public bidding process for the property sales, depending how the special legislation is written.

In the meantime, the town will be conducting a full 21 E, or environmental report, on the property, in response to some concerns expressed at the last public meeting about knowing what contaminants might be on the property.

"This is another example of how the region continued to lead in the economic recovery," said Paul F. Matthews, executive director of the 495/MetroWest Partnership. "This site offers potential for a really innovative partnership between Westboro and a developer."

Mr. Matthews also noted that in a time when many communities are struggling financially, the town is willing to put the resources on the table and make the property — and protecting the town — a priority.

"The site holds some tremendous potential,"Mr. Matthews said. "The town of Westboro now has an opportunity to steer where the development goes, rather than be a passive bystander."

"There needs to be some thinking outside the box," Mr. Matthews said. "It is a wonderful site that has some unique characteristics that make it challenging. It is not going to be a cookie cutter office park."

The town will hold two public information sessions prior to the fall town meeting — Tuesday, Aug. 27 and Tuesday, Sept. 17, both at 6 p.m. in the Westboro High School Auditorium.

Contact Donna Boynton at dboynton@telegram.com or follow her on Twitter @DonnaBoyntonTG

Never miss a story

Choose the plan that's right for you.
Digital access or digital and print delivery.